What are the benefits of doing business in Nigeria
By 2050, Nigeria is projected to be the 4th most populous Country in the world. This huge population, growing need for development, and friendly policies have made the country a great place for doing business. From all indications of economic activities, including the rising number of business registration in Nigeria, the country has the potential to become one of the strongest economies in the world by 2050. In this article, we shall be bringing to your doors steps 5 benefits of doing business in Nigeria.
The country is also blessed with numerous natural resources that can be transformed into great businesses. These resources are in addition to the great talents spread across the country. These natural resources and talents position the country as a frontier market and potential place for investment. Despite the GDP rebasing and poor ranking in global economies, Nigeria is still a great place to do business.
Nigeria has been termed the fastest-growing economy in Africa despite its high dependency on revenue from oil and gas. This is because it is one of the world’s largest producers of crude oil. This has led to other industries showing significant growth opportunities in agriculture, real estate, consumer goods, and retail. Changes have been put in place to change the narrative and enable the economy to be diversified.
Potential investors or entrepreneurs need to adapt to Nigeria’s business ecosystem to enjoy the benefits it provides. They must be flexible in their activities and get familiar with the legal responsibilities of starting a business in Nigeria. Also, there may be differences in the approach and manner of doing business in Nigeria as compared to other countries. Partnering with a citizen or using the services of business consultants will go a long way in helping foreign investors. This will help you as a foreign investor to adapt and settle in quickly.
As a nation with over 250 ethnic groups, doing business in different parts of the country comes with specific considerations. This includes religious beliefs, cultural boundaries, and moral issues. Also, establishing some level of relationship with prospective customers/clients is equally important. This is because Nigerians tend to support and patronize brands they are familiar with, especially those endorsed by their leaders. Furthermore, An understanding of the legal, financial and cultural structures of doing business in Nigeria will ensure maximum success.
Hence as a company coming to Africa, Nigeria is a good place to start with and expand from due to its strategic location, population, growing economy and the spread of Nigerian culture throughout Africa.
What are the Benefits of Doing Business in Nigeria
1. Access To Abundant Resources
As stated earlier, Nigeria is blessed with enormous resources, most of which are yet to be fully exploited. There are tremendous investment opportunities that exist in the solid minerals sector. Some of these mineral resources include coal, tin, iron, gold and ore among others. The country is also blessed with a vast land mass that can be used to cultivate Agricultural products such as groundnuts, palm oil, cocoa and coconut among others. In addition, Nigeria is one of the largest oil producers in Africa, this creates a huge inflow of foreign investment. Registering your business in Nigeria places at your fingertips all the relevant natural resources needed to make your operations easier and saves you time, and energy.
2. Large Consumer Market
The population of Nigeria is over 170 million. It has the highest population density in Africa and is the ninth most populous country in the world. More than 62% of Nigeria’s population is under 25 and its growing middle class makes up 23% of the population, who form part of the labour market and are active consumers of food, clothing, shelter, energy, transportation, and education among other needs. Doing business in Nigeria, especially in the essential sectors comes with the benefits of having a lot of consumers as there is the need for companies, industries and enterprises to meet the demands of Nigerians. As long as the business meets the needs of more than half of the population with the strategies adopted, there is an over 80% chance of success.
3. Political Friendly Environment
Despite the conflict among different ethnical and religious communities in Nigeria, the country has a stable political environment. This implies that the Government and its policies are friendly towards businesses and this is likely to continue in the long run. Also, this gives assurance of business stability to both native and foreign investors as against countries with unstable political environments. The stability of politics in Nigeria has enabled the government to provide relevant laws and regulations such as tax holidays; tax credits; capital allowances; investment allowances; tax exemptions; duty drawbacks; subsidies; export expansion grants; export development funds; double taxation reliefs; and investment promotion and protection agreements, among others to investors or entrepreneurs in Nigeria. Contact us for more programmes available to foreigners doing business in Nigeria. Here is all you need to know as a foreign investor in Nigeria.
4. Fast-Growing Economy
Nigeria has one of the largest free market economies in Africa despite the recession and COVID-19 pandemic. For over a decade, the economy has enjoyed sustained economic growth in various aspects. In addition, the economy is being diversified and becoming more service-oriented in sectors such as real estate, information and communication, banking, retail and wholesale trades. From the looks of activities in the country, there is a prediction of over a 5%, increase in the GDP. Also, policies and initiatives of the government to transform its agricultural sector put the Nation’s economic growth in double-digit territory.
5. Attractive Incentives
The Government of Nigeria has a comprehensive package of investment incentives to motivate investors from the private sector both within and outside the country to invest and enjoy doing business in Nigeria. Some of these incentives are included in The Companies Income Tax Act which was amended in 2015 to encourage both native and foreign potential and existing investors or entrepreneurs. There is also The Pioneer status Grant that gives specified industries a five-year tax holiday. Free Trade Zones and tax relief are provided for the research and development of companies. Furthermore, Investors may repatriate 100% of profits and dividends.
The Nigerian Government has put in place policies and programs that guarantee a free market economy. This and many other steps taken by the Government have made it easier for investors or entrepreneurs to penetrate the market and make profits for themselves while contributing to the GDP of the nation.
Conclusion
Despite the low-hanging fruits of doing business in Nigeria and all the opportunities the country holds, it will be unethical to ignore some current realities in the country such as the high level of poverty and a low level of talent development. This should however give more motivation to investors to register their business in Nigeria because these challenges present opportunities that they explore.
There is no better time to dive into doing business in Nigeria than now. To get started, you need to get a law firm in Nigeria to assist you in registering your business and ensure all the legal documents you need to operate a business are ready. Greengold Attorneys are willing to assist in making your business start-up process easy and ensure your Corporate Structure sets you on the right path as you do business in Nigeria.